4 Premiers to Testify Against Carbon Tax Hike at Parliamentary Committee

Two people walk toward the Centre Block on Parliament Hill in Ottawa, in a file photo. (The Canadian Press/Sean Kilpatrick)

Four conservative premiers will appear before a House of Commons committee this week to ask Ottawa to reconsider its “punishing” April 1 increase of the federal carbon tax.

The premiers of Alberta, New Brunswick, Nova Scotia, and Saskatchewan shared on social media this week letters they had written to the House Finance Committee requesting a chance to testify about the impending carbon price hike.

The premiers’ letters described the upcoming 23 percent increase that will see carbon pricing rise from $65 to $80 per tonne as “punitive” and “disastrous” for Canadians.

Liberal House Finance Committee Chair Peter Fonseca declined to recall the panel of MPs to accommodate the provincial leaders’ request, Tory MP Kelly McCauley said in a March 26 social media post.

But the premiers will have the chance to express their opinions before the committee Mr. McCauley chairs. The Conservative chair of the Government Operations and Estimates committee has invited the premiers to testify via video conference.

“Premiers should be welcomed before parliamentary committees and given the opportunity to testify, especially on matters of national importance, like the April 1 carbon tax hike,” Mr. McCauley said in a letter posted on X.

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The proceedings will kick off at 11 a.m. March 27 with Saskatchewan Premier Scott Moe. Mr. Moe has been sparring in recent months with federal Environment Minister Steven Guilbeault after his province stopped collecting the carbon tax on home heating on Jan. 1.

The premier referenced that decision in his letter to Mr. Fonseca, saying Saskatchewan’s inflation has fallen as a result of the move, but added that Ottawa raising the carbon tax yet again will “increase the cost of almost everything.”

Alberta Premier Danielle Smith, New Brunswick Premier Blaine Higgs, and Nova Scotia Premier Tim Houston will testify before operations and estimates on March 28.

“The last thing Nova Scotians, and Canadians, need right now is more tax,” Mr. Houston wrote in his March 26 letter to the committee. “This will be a punishing tax hike on the residents of my province.”

Alberta’s premier agreed, saying “crippling inflation” and high interest rates have taken a toll on Canadians.

“The punitive 23 percent carbon tax hike” must be cancelled for “the sake of Albertans and all Canadians,” Ms. Smith said in her letter.

Mr. Higgs said the April 1 increase will “have a disastrous impact on New Brunswickers and all Canadians.” His letter asks Ottawa to “at a minimum, cancel the planned increase.”

Prime Minister Responds

News of the provincial leaders appearing before the committee comes the same day Prime Minister Justin Trudeau scolded the seven Canadian premiers who have been speaking out against the carbon tax for not offering alternative solutions to the current program.

“Since Canada’s carbon pricing system was first introduced in 2019, we have made it clear that we are open to working with any and all provinces and territories that want to establish their own pricing systems,” Mr. Trudeau said in a March 26 letter posted on social media.

“When we last engaged with provinces and territories on this in 2022, all of your governments either did not propose alternative systems or (with the exception of New Brunswick) proposed systems that did not meet the minimum standard for emissions reductions.”

The prime minister said his government remains “open to proposals for credible systems” that put a price on pollution as long as they reflect the “unique realities of your regions and meet the national benchmark.”

“We are always happy to work with you on fighting climate change,” he added.

The letter comes just two weeks after the prime minister described the premiers opposing the carbon tax increase as “short-term thinker politicians.” He maintained the policy is the best way to set Canada up for “success in the future” and is a “logical way” to address the impacts of climate change.

In his letter, Mr. Trudeau again repeated his stance that the Canada Carbon Rebate more than pays back eight out of 10 Canadian families, with low and middle-income households receiving the most money.

“As the price on pollution increases, so does the Canada carbon rebate, which means Canadian families can expect more money in their bank accounts on a quarterly basis,” he wrote. “Rebates are about to go up.”

A 2023 Parliamentary Budget Officer (PBO) report has refuted Mr. Trudeau’s assertions that Canadians get more back from the rebate than they spend. The report indicated the carbon tax would result in a “net loss” of between $377 and $911 in 2024–2025 for most Canadian households even after receiving federal rebates.

The federal carbon tax is applied across the country except in British Columbia, Quebec, and the Northwest Territories where they collect their own fuel tax.

Canada’s carbon tax is the price placed on the carbon content of fuels to reduce CO2 emissions. It kicked off in 2019 at $20 per tonne and rose to $50 per tonne in 2022. The price is set to rise $15 per tonne every year until it eventually reaches $170 per tonne in 2030.

Ottawa has described the carbon tax as a necessity to achieve net-zero carbon emissions by 2050.